Citadel Investment Group is backing a new all-electronic futures exchange that may compete with hedge fund giant’s hometown Chicago Mercantile Exchange, the world’s largest futures exchange.

The as-yet-unnamed futures market is expected to launch its first product—U.S. treasury futures—early next year.

The low-cost bourse is backed by a dozen financial institutions, and will be headed by Paul Saltzman, chief operating officer of eSpeed, as acting CEO. eSpeed will also serve as the exchange’s technology provider.

In addition to Citadel and eSpeed, the other members of the group include banks Bank of America, Barclay’s, Barclay Capital, Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Merrill Lynch and the Royal Bank of Scotland, as well as trading firm GETCO LLC and liquidity provider PEAK6.